Poverty Measurement in the Presence of a 'Group-Affiliation' Externality

S. Subramanian

Journal of Human Development and Capabilities, 2009, vol. 10, issue 1, 63-76

Abstract: This paper considers the implications for poverty measurement of the observed fact that any individual's level of deprivation is a function not only of his own income, but of the general level of prosperity of the group to which he is affiliated. Individual deprivation functions are specialized to a form that reflects this 'group-affiliation' externality, and the resulting poverty measure is studied with respect to its properties, and its implications for poverty rankings. Mainstream approaches to measuring deprivation tend to neglect group-related externalities in favour of a certain thorough-going 'individualism'. This paper is a preliminary attempt at filling this gap.

Keywords: Grouping; Affiliation; Externality; Poverty; Inequality; Axiomatics (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1080/14649880802675168

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